What are Married Couples Allowance?

From your taxable income, there is an amount that is tax-free against the income tax, this amount is known as allowance. You can avail this amount tax-free each year. This blog post provides a simple guide to married couples allowance, its eligibility criteria, and the limits of this allowance. Let’s find out.

 

Married Couple’s Allowance:

Married Couple’s Allowance could reduce your tax bill each year if you’re married or in a civil partnership. For the 2024 to 2025 tax year, it could cut your tax bill by between £427 and £1,108 a year.

Use a Married Couple Allowance calculator to find out what you could get.

Currently, in 2024/25, the MCA is around £427 to £1108 a year. However, if your income is above a certain limit, it decreases by £1 for every additional income of £2.

Eligibility Criteria:

To claim this allowance, you need to fulfil the below criteria:

• You’re married or in civil a partnership and you haven’t used this allowance before
• You’re living with your partner and spouse
• From both partners, one was born before 6 April 1935

If you’re born after 1935, you can get a Marriage allowance.

You can claim this allowance if you’re unable to live with your partner due to the following reasons:

• Old age or illness
• Armed forces posting
• Working away from home
• Prisoner
• Training or getting an education

Find out how you can avail the marriage allowance. Get in touch with us.

Married Couples Allowance- Lower and Upper-Income Limits:

MCA is determined by your earnings. The lower limit for MCA is £30,400 in 2021-22. If you’re earning below this amount, you’ll be eligible for the full amount of the allowance. MCA can fall by £1 for every £2 if it crosses a certain threshold. However, many high earners can also qualify for the MCA of a minimum of £3,530.

If your tax bill is too little to use all the married couple’s allowance, you have the choice to transfer the rest of the allowance to your partner.

Quick Wrap Up:

To claim married couples allowance, you should fill out the Married Couple’s Allowance section of the tax return in self-assessment tax returns each year. If not, you should contact HMRC sharing details of the marriage ceremony or details of your spouse.

 

Disclaimer: This blog provides a general overview of a married couple’s allowance.